KB 5 ? 2 1 Calculating NPV, IRR, and the crossover rate - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW FILE HOME INSERT Sign Calibri - 11 | P A A 101 M Paste BIU % Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells Editing Clipboard Font A1 : for A B D E F G H I J 1 2 3 Garage, Inc., has identified the following two mutually exclusive projects. a. What is the IRR for each project? b. If the required return is 11 percent, what is the NPV for each project? c. What is the crossover rate between these two projects? 4 5 5 6 7 8 Year 0 Year 1 Year 2 Year 3 Year 4 A A A $ $ $ $ $ A (43,500) 21,400 18,500 13,800 7,600 9 $ $ $ $ $ A A A A B (43,500) 6,400 14,700 22,800 25,200 10 11 12 13 Required return 11% 14 15 16 Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel functions to answer this question. 17 . 18 Cash flow A IRR Cash flow B IRR 19 20 21 Cash flow A NPV Cash flow B NPV 22 23 24 Difference in cash flows 25 26 27 Year 0 Year 1 Year 2 Year 3 Year 4 28 29 30 31 Crossover rate 32 33 34 35 Sheet1 + ILE